How To Partner With Top Insurance Companies

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How To Partner With Top Insurance Companies

One of the quickest and pain-free ways of getting involved in the towing business is to partner with insurance companies that offer roadside assistance. Roadside Assistance is an important part of the American landscape, it’s been around since 1915 when a fledgling car club called AAA saw the opportunity that existed and introduced a service to assist stranded motorists.

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Everyday AAA alone receives more than 29 million calls per year for roadside assistance. And although they’re the largest, there are dozens of other companies providing the same type of service in the United States today.

People Hate Being Stranded

It’s easy to understand why it’s such big business, people hate to be stranded and Roadside Assistance saves them time, trouble, and money. They love the peace of mind that comes from having an 800 number in their wallet, and knowing that one call will bring much-needed help wherever they travel.

When you come to understand and appreciate this relationship, and partner with the top Insurance providers, you’ll be regarded as a valuable asset and business partner. And right now is a great time to get involved.

We suggest that you employ the Roadside Assistance Business Model to grow your roadside assistance business. It suggests exploitation of the four ways in which a stranded motorist, (a roadside assistance company’s ideal customer) finds service when in need. They are;

Opportunities Abound

Although roadside assistance has been around for 100 years, the majority of motorists have not yet taken advantage of all that Insurance Companies have to offer. On US roads today, there are over 250 million vehicles with an average age approaching 12 years.

Couple that with the fact that there are over 170 million cell phone users in the US and you can begin to see the opportunities that exist? It’s the perfect recipe, with the result being success for your towing business.

Here’s Why Partnering With Top Insurance Companies Works

Americans have always been self-reliant, picking themselves up by their bootstraps. And when they can’t do something…when they don’t have the ability or expertise, they get a friend or relative to help. Yes that’s the way it’s been for a long time but things are beginning to change.

You’ve seen it…maybe you do it yourself. Everyday there are millions of people at restaurants, on trains, waiting for the bus…totally ignoring each other. They’ve all got their heads down looking at their phone or personal device, oblivious to the world around them. We’re not interacting with one another like we used to. This means real-world relationships are taking a back-seat.

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But what’s that got to do with the towing business?

Instead of relying on friends and family when stranded, motorists are quickly becoming accustomed to choosing another sort of self-reliance. They’ve become irreversibly attached to the roadside assistance that can easily be summoned with their smartphones.

And as this trend increases, and more people become addicted to calling roadside assistance… Inevitably there will be more need for the services of towing companies. And, as with any market, when demand is high and supply is low (not enough tow trucks), the rates for your services will increase.

Now is the time to take advantage of this perfect storm.

You could do what many other towing companies do…COMPLAIN. I’ve done it BUT IT GOT ME NOWHERE.

You could be like a jealous lover who despises the relationship motorists have with their Roadside Assistance, believing there’s no need for a middle-man to come in-between you and “your” customer.

But if you do that, you risk being viewed, by both the Insurance Company and the motorist, as a liability. And if that attitude persists, they’ll quickly look to replace you. So embrace the fact that motorists love Roadside Assistance and take advantage of the tsunami of calls that are on the way. Although you must be assured that you are continually making a sustainable profit, and you do that by knowing your average cost per tow working with motor clubs has a few advantages.

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Ask Us How

How Roadside Assistance works and how can you partner with top insurance companies to make a ton of money in the towing business?

How Insurance Companies and The “Roadside Assistance” Thing Works

In every transaction involving roadside assistance there are a minimum of three participants (although there can be as many as four or five). The three main players are the insurance company, the motorist, and the towing company.

To understand the nature of these transactions, and so you’ll know how to properly work with insurance companies, I’ll explain how each partner benefits from the relationship.

The Insurance Company:

Along with other products, Insurance Companies sell roadside assistance insurance to their customers. Their promise is that, should the motorist become stranded or in need of other services included in their roadside assistance package, they’ll find the closest tow truck to help them out.

Of course most Insurance Companies don’t own their own tow trucks. Instead, they contract with towing companies all over the country, large and small, to respond when a motorist has a claim. And generally, these Insurance Companies make their money by one or more of these three methods.

1. Direct pay

With a Direct Pay agreement, an Insurance Company charges the motorist receiving the service a direct fee. Here’s how it works. The motorist calls the Insurance Company when they need roadside assistance, the Insurance Company takes all of the information and contacts a local towing company, which does the work.

The motorist pays the Insurance Company an agreed-upon amount and the Insurance Company pays the towing company their fee. This is usually less than what the motorist has paid the Insurance Company. The Insurance Company then keeps the difference as their fee for providing the service.

2. Annual or monthly premium

The motorist pays an annual or monthly premium to the Insurance Company for the service. The Insurance Company has many policyholders who pay their premiums, and they only pay out only when service is requested and authorized, per the terms of the agreement. In essence, with this option the Insurance Company is playing a sophisticated numbers game using actuarial science and psychology to ensure that they don’t lose.

3. Fourth-party contract

The Insurance Company contracts with a company like a car manufacturer, another insurance company, or a wireless phone provider (fourth party), who then sells the Insurance Company’s services to their customers, or provides those services at no extra charge, as a perk, to their customers. In this scenario the Insurance Company is competing with others in their industry. In order to win, they promise the highest-quality service at the lowest rates while still operating at a profit. Sometimes, this method can result in rates for towers that are less than desirable.

Each Insurance company has its own business model and has worked with towers to hone it and make it work. But even though most Insurance Companies understand and value the relationship they have with their towing partners, you must be careful when deciding what companies to work with. Most are reasonable and value the service that tow truck operators provide and view what they do as an indispensable part of their business but others are not so easy to get along with.

Of course, there are other types of relationships in the Insurance Company world that I haven’t covered here, but the most important point is that Insurance Companies are in business to make money, and if you can help them do that, they’ll want to partner with you. If you’re looking for towing company insurance to protect your business from liability, you’ll want to check out this article.

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The Motorist:

The motorist is the person in need of service. Traveling locally or cross-country, motorists can and do experience any number of difficulties, everything from flat tires to accidents. They use the services of an Insurance company for speed, economy, and peace of mind. Motorists’ expectations fall into three main categories.

1. Quick and easy service

Some motorists believe that finding a tow truck when they need one will be difficult, so they purchase roadside assistance. They do this in the hope that the Insurance Company’s connections will enable them to find an available towing company and expedite service.

2. A belief that towing companies will gouge them

For decades Insurance Companies have perpetuated the fear that towing companies will take advantage of stranded motorists. As a result, motorists fear that, without their Insurance Company’s involvement, they will be charged outrageous rates.

3. Fear of being stranded

Having Roadside Assistance assures motorists that they’ll find a towing company to help, no matter how remote the location.

The towing company:

Towing companies provide towing and related services. Upon receiving a call from a Roadside Assistance dispatcher, towers are usually asked to give an estimated time of arrival when they can respond to a motorists’ needs. Towers are compensated for their time through three main methods.

1. Contracts

So should you be a contracted roadside assistance provider for the insurance companies? Of course, this is an Insurance Company’s preferred method. They ask for a certain amount of free miles plus a standard hook, and a service-call rate that can be below the tower’s standard rates. A tower who signs this type of contract might be inclined to believe it includes entitlement to an exclusive area, and that the company will send all their customers his way if he lowers his rates and contracts with them. This isn’t always the case. Many times the Insurance Company will sign with multiple towers in the same area and choose arbitrarily or give preference to those with the lowest rates.

1. Primary or preferred provider

Some Roadside Assistance Companies will offer what’s called primary, or preferred-provider, status. This means that the contracted tower will be their first, and sometimes only, contracted provider in the area. But to attain this highly coveted status he’ll be asked to come off his rates. In other words, as a condition of being preferred or primary, he’ll be required to accept less money for each call. The reason many towers like and agree to this arrangement is the belief that the volume of calls will more than make up any potential loss from the lowering of rates.

2. Call-up, no contract

In this scenario the Roadside Assistance Company has a motorist who needs service, but there’s no contracted tower in the area, or there’s none available at that time. With no contracted provider available, the Roadside Assistance Company consults their list of known towers in the area (a list that can be populated by towers who’ve signed up but are not contracted), or the Roadside Assistance Company will perform an on-line search, if their primary list produces no results. When they find a tower to accept the call, the Roadside Assistance Company will pay him at his rates, usually with a credit card.

Now that you know about the opportunities that exist and how Roadside Assistance works the next step is to go to Guide To Partnering With Top Insurance Companies, where you’ll find a comprehensive list of the top Insurance companies providing Roadside Assistance and a free guide that shows you the 3 strategies of partnering with them.

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If you aren’t in the towing industry yet, but are excited about this opportunity and want to learn how to start a towing company we can help. The Tow Academy has help thousands of people start and grow their towing and roadside assistance businesses, and we can help you too. From simple roadside assistance only, to heavy-duty police towing, we’ve got you covered. Give us a call.

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About the Author: Don G Archer

Hi, my name is Don G Archer, but my friends call me Archer. I am a former owner of a 12 truck, 20 employee towing business which I successfully sold in 2015. Now, I help tow company owners get more customers and close more calls, even if they don't know their way around a computer, are not great at sales, and don’t have the time to learn. I am a multi-published author, educator, writer, and speaker and am known as the tow-evangelist. www. thetowacademy.com. Want to learn more? Email him direct at don@thetowacademy.com

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81 Comments

TowBilly August 7, 2015 at 3:41 pm - Reply

Where can I get insurance? I’m in the towing business now but haven’t worked for insurance companies too much. Mainly paid with a credit card. I called and they all want different kinds of insurance, different than what my automobile insurance company offers.
Thanks

Don G Archer August 7, 2015 at 3:52 pm - Reply

You’ll want to find a carrier that specializes in insurance for towing companies. You shouldn’t have too much of a hard time if you only have one or two trucks. You’ll need: General Liability, Automobile Liability, Workers Compensation (check your state requirements), On hook/Cargo and garagekeepers.

Shawn givens May 12, 2017 at 2:20 am - Reply

Hi don, I’m looking to start my own business but don’t have a tow truck yet. How can I get contracted for roadside assistance just for lockouts, tire changes, and helping customers who’ve ran out of gas?

acbow245 August 11, 2015 at 5:38 pm - Reply

If you don’t have a contract with them then there’s no guarantee that they’ll call you. They could just call anyone outside the area. And I heard that if you’re contracted with some of the motor clubs then they will refuse to pay you with a credit card even if the call is out of your area. It’s like you’re being punished if you’re contracted with them.

Don G Archer August 11, 2015 at 5:48 pm - Reply

It is true that sometimes, when calling for service out of your area, a few of the motor clubs/insurance companies will refuse to offer a credit card for payment if you’re a contracted provider. As far as I know there’s nothing set in stone there but you should be aware that it may happen. Be sure to read the agreement before signing.

Donnie Knight September 9, 2016 at 2:48 pm - Reply I do everything accept tow Steve November 11, 2016 at 9:48 pm - Reply Thats what I was thinking about doing…everyting but tow. Hows that working out? tim January 20, 2018 at 11:59 pm - Reply

Hi i was hoping that you can give me some pointers and tips on how you got started im looking to start my own roadside assistant contract with an insurance company

tim January 21, 2018 at 12:01 am - Reply

i want to do baterry service, and maybe lockouts as well, but i need ome info on how to get this started what did you do staeps please help me

Kevin December 13, 2020 at 5:29 pm - Reply

How would one go about doing this with Tow? I want to do battery services, tire changes and lockouts. Thanks for any info.

Kevin December 13, 2020 at 5:30 pm - Reply *without tow. Sorry for the typo there Jonathan Williams December 8, 2016 at 4:15 pm - Reply

Hello I’m interested in working as s contractor doing road side assistance as a contractor how do I get started I’m in the Baltimore MD Area thank you very much.

Don G Archer December 9, 2016 at 9:23 am - Reply

Start by going here and reading this post Then if you need help give me a call or shoot me an email. Thanks

Kyle March 3, 2017 at 3:47 am - Reply

If you don’t have any experience I would recommend working as a subcontractor for a local company. Inman’s auto rescue is where alot of people get their start myself included and then go on to starting their own business. They are a nationwide Company and will keep you super busy although they don’t pay as much as other companies you get more work as they are a preferred provider in most areas. They will work you and your car into the ground but if your willing to put up with it for a grand or so a week you’ll definitely get a lot of experience quick. Feel free to ask me any questions you want. I worked for a year before I had enough and started my own business.

Don G Archer March 3, 2017 at 7:44 am - Reply

Thanks for commenting Kyle. From what I’ve heard from others who’ve worked for Auto Rescue is that they only pay around $12 per call. Imagine traveling 10 miles in rush-hour traffic to change a tire, and it’s one of those stubborn tire changes where you spend 20 minutes just to retrieve the spare. That’s a lot of time and effort for $12.

earl terry January 27, 2018 at 3:13 pm - Reply Britan February 6, 2023 at 12:29 am - Reply

That is true. I worked for them. And they don’t pay you if they cancel the job. Personally, I just want to start my business with the first year or two of only doing jumps, lockouts, gas deliveries, and tire changes. Have a few people work for me.. then once we are an official company and calls come in nonstop.. that’s when I want to add towing.
How can I get contracts for insurance calls?

Brandon March 16, 2017 at 4:12 pm - Reply

I have my business license in Roadside Service and ready to go. I have a felony and still able to get my towing card, so what do I need to do to get excepted?

Don G Archer March 18, 2017 at 9:19 am - Reply

Brandon
I’m going to assume your question is regarding being accepted by the motor clubs. Depending upon variables like the type of felony and how long ago you were completely discharged, you may or may not be accepted by the clubs. To learn whether or not you can contract with any of them, you must apply. But before you do that check with your state Board of Labor and your city Chamber of Commerce to learn if there are any programs that might help you transition into this new role. Recidivism costs governments money so I’m sure there’s some type of program in place to decrease occurrences. Thanks and good luck.

Floyd March 28, 2017 at 12:44 pm - Reply

Hello I’m starting a roadside assistance business for Semi trucks in Chicago area I’m not sure what insurance I need and what is the general coverage for me to get on there breakdown call list I keep reading about insurance certificates that they will need but when I call insurance companies they have no idea
Should I be looking under towing insurance for roadside​ assistances
Thanks

Don G Archer March 30, 2017 at 6:52 pm - Reply

Floyd
Insurance for the towing business is not the same as consumer insurance for an automobile, as I’m sure you are aware by now. If you’re doing straight roadside assistance without hooking to the vehicle and moving it you’re going to need liability for sure. The limits are going to depend on many factors, state minimums, your safety procedures, experience as a roadside technician, etc. To get the best answer to your question, I would suggest that you call an insurance agent who works primarily in the towing industry. The one I suggest is Weiss Insurance out of St. Louis, Cindy Horn knows her stuff. You can call her at 636-787-7777. Thanks and good luck

chris harris March 30, 2017 at 9:54 am - Reply

Hey hows it going i was reading above and I have a question just got an offer to be a service provider for my first insurance company I currently have 2 rollbacks right now ,just wondering what the going rate insurance companies will pay being contracted with them for hook fee and $ mileage unloaded and $ loaded I don’t want to agree to a rate and screw myself by doing the tow for too cheap a lot less then retail value then i would get from a regular customer I know it has to be cheaper than usual because they will be giving me more work im just wondering how much cheaper? The rep from the insurance company said there’s room to negotiate but i’m not sure how much. I do tow for a few different insurance companies now but i’m not contracted with them so i get normal rates when i work for them which is nice but could use the extra work right now

paul December 22, 2020 at 3:33 pm - Reply

Hey Chris
What did you find out or did you just end up winging it? It doesn’t look like Don does much for responding to the questions that people offer up on here which isn’t helping to sell me on his motivation but who knows. I’m hoping to do the same thing once I figure out how to tie myself in with an insurer. I already have a rollback commercial carrier insurance and on hook insurance.

Don G Archer March 1, 2021 at 3:30 pm - Reply

Paul,
Sorry for the delay in responding to your comment. Our clients take priority and we’ve been overwhelmed recently. Thanks

Jordan April 19, 2017 at 7:24 pm - Reply

I wanna start a roadside company how do I go about getting it started not gonna tow right away gotta save up for a truck just wanna do light and medium duty lockouts jumps fuel and tires I have been with a company going on 7 years so I have plenty experience just ready to do my own thing now

tim January 21, 2018 at 12:29 am - Reply

jordan. hey im in the same boat is you i done roadside assistant for AAA motor club doing battery service in PHX,AZ i see the potental in the buis i want in as well but im not sire on the rite procedures and steps, can you give me any advice on what you researchd on or learnd. please it will help me thx

Marquita Wilson April 21, 2017 at 12:20 pm - Reply

Good morning Mr.Archer
Hello my name is Marquita I’m inquiring information for my Husband, he is really trying to get his foot in the door of becoming a self contracted road side assistant/ mobile mechanic server, if its not to much to ask could you please inform me on the steps to share with him on how to get start on his future Investment…

Justin Agudio April 26, 2017 at 3:20 am - Reply Where can i get a list of companys too partner with? Johnny Boodhoo May 5, 2017 at 12:59 am - Reply

Hey Don, im interested in doing replacement wheels on vehicles that has been vandalized.
How do I go about getting started.?
Any ideas?
Ty.

Will May 21, 2017 at 6:16 pm - Reply

Any of you on here needing a Roadside Service tech in the Beaumont TX or surrounding areas? Looking to join networks and offering services in my local areas as needed, part-time. Can you suggest anything else that can help me get customers in the area as an Independent provider? Thanks

sardarsait August 3, 2017 at 1:44 pm - Reply

We have towing vechile company name vellore recovery service accident vechile towing car,imported two wheelers heavy vechile towing service 24/7days working

sam September 21, 2017 at 4:34 pm - Reply how do I partner with the state and local police departments? Raisa Delima September 23, 2017 at 2:53 pm - Reply

Thanks for talking about payment options for roadside assistance companies. I was curious how all of that would work with insurance companies. I’ll have to talk to mine and figure out a way for me to find the right roadside assistance service to help me in case I need it.

Steven September 30, 2017 at 3:45 am - Reply I just bought a tow truck how can I sign up to provide road side service GReina October 14, 2017 at 11:51 pm - Reply

Hello I am want to open my own roadside assistance and tow in Maryland could you help me with some more how to go about it info

Damian Stills October 18, 2017 at 3:32 pm - Reply

Hi there my name is Damian I have a Roadside van I’ve been looking for Roadside work my question is do I need commercial insurance to get a contract with some of the insurance companies around my area or can I use my own regular insurance

Don G Archer October 18, 2017 at 6:02 pm - Reply

The sad truth is that some of the (roadside assistance companies/motor clubs/insurance companies/Apps) do not require you to have the same types of coverage as their contracted providers. They don’t even ask, they just do a Google search and if you’re available and agree to their low-ball fee, you’re in. If you become a contracted provider you’ll be required to provide the roadside assistance company with a certificate of insurance. Depending upon the types of service you provide you may need garage keepers, on-hook, and cargo, as well as possibly needing a larger umbrella policy. Good luck and thanks for commenting.

tim January 21, 2018 at 12:19 am - Reply im thinking of partnering with a insurance company what steps in order do ineed to do tim January 21, 2018 at 12:23 am - Reply

damian stills i just want to see how you doing with your roadside work , what kind of insurance did you get, and are you contracted.

Habib S. October 19, 2017 at 5:07 pm - Reply

Hello, I’m looking to partnering with auto insurance companies how much do they pay on average for a service call

Don Archer October 20, 2017 at 11:52 am - Reply Thanks Habib, I’ve already replied to the same question. Habib October 20, 2017 at 11:32 am - Reply Hello, how much on average are calls taken from insurance companies Don Archer October 20, 2017 at 11:50 am - Reply

Motor club/insurance company rates vary from region to region, and…dependent upon whether or not a towing company is contracted with a particular motor club or operating as a non-contracted provider, the rates can range significantly. As a contracted provider for AAA our base rate was $22, 3 free miles en-route, then $1.25 per mile after that, 3 free tow miles, then $2.25 per mile towed. As a non-contracted provider for some of the other clubs, our hook fees were same as commercial…between $55 & $150 depending on the wrecker needed, and we would add en-route if warranted, then between $3 and $5 per mile towed. Word of caution, don’t trust motor clubs, don’t buy a second truck strictly on motor club revenue alone, contracted or non-contracted. Motor clubs must compete with other motor clubs and may lose contracts with certain manufacturers or other companies. This means that the motor club you trusted to provide you with revenue to help pay the insurance, fuel bill, truck note, and feed your family, may not HAVE the calls to provide you down the road. Autonomy, and spreading the risk are the way you stay healthy in the towing business.

Habib October 20, 2017 at 2:55 pm - Reply Thanks a lot for the reply, one other thing is possible to lease a tow truck if so where from Joannie November 3, 2017 at 12:50 pm - Reply Do you have a telephone number to become a provider for Roadside Assistance in upstate NY? Yusef Hassan November 3, 2017 at 5:08 pm - Reply

Hey guys, For all the people that are asking about the MINOR ROADSIDE services only. I started my towing business like that for a year and it was all good and all but when the bigger towing companies see that the motor clubs are taking all the service calls away from them and doing the tows only. the towing company will eventually give the motor clubs the finger until they give them the service calls back. That’s what happened to me. I was running about 2000 service calls in my area a month, but when all the towing companies realized the loss they had, They told the motor clubs “either give us both service and tows or don’t give us any calls” Now the supervisors are in the sticky situation because they need someone to do the towing for them… Eventually, that 2000 calls a month for service calls went down to 200 calls a month. The only way I had to get those service calls back was to start doing towing. and 1 truck won’t cut it for the volume they were giving me they recommended 5 trucks. Luckily for me, I was always saving up for these kinds of situations. I had enough to get 3 trucks financed and now I’m doing 3500 calls a month 2000 service calls and 1500 tows. Moral of the story, service only is not secured.

Christopher Moss November 4, 2017 at 12:47 am - Reply

I’m a roadside assistance worker currently I do about 100 calls a week and an trying to receive more. Any advice?

Jeffrey November 29, 2017 at 7:36 am - Reply

i’m looking for advice on how to register my company with bigger companies I’m a registered member with AA n Utasa.and I get only 8 calls a month I manage to register with FAM but the guy plays hide n seek with me because I xpress him the applications and e-mail but no answer.can you please supply me with bigger companies number

Wess Bryant January 26, 2018 at 2:00 pm - Reply I just want to do lock outs jump starts and tire changes. Can i get work if i dont tow Don G Archer January 26, 2018 at 3:24 pm - Reply

Wess, Thanks for the question. The short answer to your question is yes. You can get work providing these 4 basic roadside assistance services (Lockouts, tire changes, battery service, and fuel delivery) BUT you’re leaving a lot on the table, and you’ll be hard-pressed to be properly compensated for your efforts. There are companies out there that work for motor clubs/insurance companies, who sub-contract these roadside assistance calls. They get paid LOW motor club rates and then pay someone like you to provide the service at an even further discounted rate. The challenges with this type of arrangement and business model, in my opinion, are many. Besides the fact that many of the companies hiring sub-contractors are unlawfully 1099ing these guys, I’ve heard anecdotal accounts that they’re only paying around $12 to $15 dollars per call. But that’s not the only issue. As a roadside assistance provider ONLY, you are cutting yourself off from a big portion of the market. Let’s say you do what’s required to get work outside of motor clubs. You’ve built a commanding online presence for your roadside assistance business, and now you’re sitting back, waiting for cash-paying customers to call you. But rather than Googling “Roadside Assistance,” many are using search terms like “towing,” or “tow truck,” when they need roadside assistance. Of course some will use the term “roadside assistance,” but what happens when you arrive to provide a customer with a tire change only to find out it’s a broken ball-joint? You can’t tow them, you’re driving a Toyota Camry. Unless you’ve made arrangements with a company who can provide towing services, you can’t help this customer. And even then, your customer must wait another 30 minutes or so for the tow truck to arrive. One stream of income for a towing business is working for Automotive Repair shops. What if you’ve worked hard at fostering relationships with some repair shops and you’re called to go provide a jump-start only to one of their customers, but upon arriving you realize that the problem isn’t the battery, it’s something you can’t help them with. This means the customer must wait for a tow truck to arrive. This is inconvenient for everyone involved, the customer, the repair shop, and you. And, even though it’s not your fault, the repair shop owner might think twice before calling you again. There are many things to consider before jumping into a roadside assistance ONLY business. I know you’re not going to like this, but I suggest you save up enough money to buy a tow truck outright, save enough money for 12 months of living expenses, and at the same time save enough money to pay your business expenses (Insurance, Marketing, Maintenance, Repairs, etc.) for at least 12 months. Then contact me and I’ll help you start a towing business. Not only will this provide you with a debt-free entrance into the industry, but you will have developed the discipline necessary to run a successful business. Thanks

Austin v February 17, 2018 at 9:15 pm - Reply

Hello Mr. Archer i live in Michigan and I’ve just purchased a dodge 5500 with a 13ft bed I wanna get into the road side before trying out a business I was wondering how sussessful is the no contact idea? I’d rather have a few calls fer colission damages with my fair rates over alot of cheap calls for tire repairs or lock outs

Demetrius Thompson March 18, 2018 at 11:54 pm - Reply

How are you don g I’m a owner operator I have a Chevy rollback and I am looking to do business with aaa I have the correct insurance requirements I was hoping you could point me in the right direction plz and thank you

Alberto March 20, 2018 at 10:22 pm - Reply

I now work in emergency roadside. I have experience in light service, battery and I am a tow driver now. And I used to be a auto tech. I want to get out and work on my own. But I don’t know where to start. I need help please.

Don G. Archer March 23, 2018 at 6:20 am - Reply

Alberto, I applaud your desire to be out on your own. First step is to develop discipline. If you can discipline yourself by putting aside enough money to not only buy a truck with cash, but also enough money to survive on during the start-up period, 12 months minimum, then you will have developed the discipline to do almost anything. The hardest part is focusing on one thing and sticking with it long enough to actually achieve anything.

B khan April 14, 2018 at 2:11 pm - Reply

Hi don i have a roll back and want to start my own bussiness but how do i get into a contract with any insurance comany

Don G. Archer April 19, 2018 at 7:44 am - Reply

B, Check out this article But be careful, insurance companies/motor clubs are in business to make money and just as Annette McDonald’s comment points out they like to play games with their rules. Besides there are other ways to acquire good, quality customers. Thanks

Jay June 12, 2018 at 6:59 am - Reply Such a great article about vehicle, this is very informative and helpful. Don G Archer June 23, 2018 at 3:54 pm - Reply Jay,
Thanks? Ismael Cano November 18, 2018 at 11:13 pm - Reply

I just paid to join so what and how does this work I do Roadside Service and lockout tires mechanic and more but don’t know if and how this works after paying the amount required to join what happens now.

Don G Archer November 19, 2018 at 8:45 am - Reply

Ismael, what do you think you joined? You purchased the “Roadside Assistance Business Blueprint.” It is an information product that explains the in’s and out’s of the roadside assistance business.

Pearmon Jones January 8, 2019 at 9:26 pm - Reply Would like to start my own emergency roadside assistance company. And I need help Casey February 18, 2019 at 10:56 pm - Reply

Hi my name is Casey viloria and I own a minor roadside assistance company and
I would just like some help with getting a contract if anyone could email me I’d really appreciate it.

Don G Archer February 23, 2019 at 1:30 pm - Reply Casey,
Go to this page on our site, you’ll find what you’re looking for. Rob March 11, 2019 at 6:06 am - Reply

We’re a smaller towing company in Ann Arbor, MI and don’t have any contract with insurance or motor clubs so this is helpful, thanks. Would be interested to see an article on partnering with a city/municipality as well.
Rob

Don G Archer April 15, 2019 at 9:48 am - Reply

Rob, thanks for the comment. Partnering with your city/municipality would be a good topic to cover. We will take that into consideration. Thanks again.

Michael Wiesner April 23, 2019 at 8:51 pm - Reply

I currently work for a AAA preferred company in maine. I do light service for them. Now I’ve been in the auto industry for years as a mechanic and decided to try my hand at roadside assistance. Im totally green in the tow and road side assistance industry and honestly don’t know anything about pay or how pay per call works. I do mostly AAA calls and a handful of cash calls. Im pulling around 140 calls every two weeks. And im supposed to be getting paid 30% of my trucks take. Now my gross pay has been between 500 and 700 every two weeks. Not knowing what AAA pays per call I can’t figure out if I’m being done wrong by my employer. In your honest opinion do you feel im being justly compensated

Kris Gaines June 22, 2019 at 1:46 am - Reply

Hello and thank you in advance for any advice. April 15th we purchased a roadside assistance business that was already turning a profit of 120k. In two months we’ve increased that to 168k but it’s been slow going because a lot of that time was spent cleaning up the back office. We purchase the entire company to include the ein, contracts, and drivers. We need help getting this business to the next level faster. Any input is appreciated.

wycham lewis July 18, 2019 at 12:10 pm - Reply

Hello, I recently purchased an international tow truck and signed up with two motor clubs. I have yet to receive one call though. I get a few cash calls but which is good. But, I am paying out of pocket for insurance and I’m not yet breaking even.

paul kandris December 22, 2020 at 3:50 pm - Reply

I’m in a similar situation as you Wycham but I have yet to get paired up with a motor club yet even. I got my truck commercial carrier insurance, on-hook insurance and just paid my premium. I need to figure out how to start making money yesterday.

Clare Low February 15, 2020 at 10:13 am - Reply This is definitely great information for those of us who are new to this. Thank you for sharing! Don G Archer February 15, 2020 at 12:15 pm - Reply Clare, thanks. We’re happy to hear you received value from it. Emmanuel December 13, 2020 at 9:45 pm - Reply

Hello Archer,
Please help! I have been involved in the Towing industry for about 6 months now. I am contracted with one motor club, which I get a call from once or twice a day, or sometimes 3 calls in a week. I do get cash calls but very seldom. Things have been really slow and I am barely making it. I feel like quitting this business because it’s not bringing in a good income. Can you recommend anything else that can be done or any motor club that pays well with good call volume? I am located in the south suburbs of Chicago.
Thank you!

Don G Archer March 1, 2021 at 3:38 pm - Reply

Emmanuel, I’m sorry to hear that you are struggling in the suburbs of South Chicago. When working for motor clubs the rates are about 60% of what a cash-paying customer would pay. For us, the only motor club that paid anywhere close to what cash-paying customers would pay was Geico. But, it’s difficult to contract with them as they seem to be loyal to one company in an area. I suggest that you work on getting more cash calls and decrease your dependency on motor clubs. I have many companies, one located close to you, who are completely free of motor club calls. Work on your online marketing and offline marketing, that’s how you free yourself of dependency on motor club work.